The Nature of Supply (Edexcel A-Level Economics A): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does supply refer to in economics?
What does supply refer to in economics?
Qty producers willing & able to sell
Why does the supply curve typically slope upward?
Why does the supply curve typically slope upward?
Higher prices mean greater profits
What is it called when price rises and firms supply more along the curve?
What is it called when price rises and firms supply more along the curve?
Extension of supply
What happens to the supply curve when production costs increase?
What happens to the supply curve when production costs increase?
Shifts leftward
How does a specific tax per unit affect the supply curve?
How does a specific tax per unit affect the supply curve?
Shifts it left
What are substitutes in production?
What are substitutes in production?
Different goods firms can choose to make
If price rises 20% and qty supplied rises 10%, what is PES?
If price rises 20% and qty supplied rises 10%, what is PES?
0.5
What does it mean if PES is greater than 1?
What does it mean if PES is greater than 1?
Supply is relatively elastic
Why is supply more elastic in the long run than the short run?
Why is supply more elastic in the long run than the short run?
All factors of production are flexible
What is the PES value for perfectly inelastic supply?
What is the PES value for perfectly inelastic supply?
0